Last year was a busy one for residential finance changes. On the positive side of the ledger, loan limits were raised. Conforming loan limits increased from $484,350 to $726,525 (high-cost) to $510,400 to $765,600 (high-cost). FHA loan limits increased from $314,827 to $726,525 (high-cost) to $331,760 to $765,600 (high-cost). VA loan limits caps were eliminated, except for those with a partial guarantee. Though, keep in mind that lenders may have restrictions. On the negative side, VA funding fees went up to 2.30 from 2.15 (first-time use) and to 3.60 from 3.30 for subsequent use. Reservists and National Guardsman no longer have to pay a higher fee.
In addition, FHA introduced procedures for getting individual condo units approved in complexes which are not FHA approved (spot condo approvals). FHA cash-out LTV’s were lowered to 80% from 85% and VA cash-out LTV’s were lowered to 90% from 100%. Fannie Mae and Freddie Mac lowered their maximum income requirements on low-to moderate income programs to 80% of the median income (AMI) from 100%.